June 25, 2009
BusinessWeek quoted SPPD Professor Richard Green in a widely carried story about bank stocks. Even properties on which borrowers made 30 percent down payments are underwater where property values are down 33 percent to 40 percent, Green noted. "On one hand, regional banks don't want to foreclose and have the property on their balance sheet. On the other hand, everyone's capital-constrained, so they don't want these loans they were planning to be rid of to hang around on their balance sheet because then they can't make new loans." Green is director and chair of the USC Lusk Center for Real Estate.
BusinessWeek quoted SPPD Professor Richard Green in a widely carried story about bank stocks. Even properties on which borrowers made 30 percent down payments are underwater where property values are down 33 percent to 40 percent, Green noted. "On one hand, regional banks don't want to foreclose and have the property on their balance sheet. On the other hand, everyone's capital-constrained, so they don't want these loans they were planning to be rid of to hang around on their balance sheet because then they can't make new loans." Green is director and chair of the USC Lusk Center for Real Estate.